BEWARE OF FICA-REDUCTION ARRANGEMENTS USING WELLNESS PROGRAMS
It has come to our attention that certain arrangements are being marketed to employers that are intended to reduce an employer’s FICA obligation by significantly increasing employees’ pre-tax salary reductions. We want to caution employers against entering into these types of arrangements before having a conversation with an employee benefits attorney who understands them. This alert provides some background on these schemes and our concerns with them.
Health & Wellness,